{"id":34947,"date":"2024-12-26T19:12:49","date_gmt":"2024-12-26T13:42:49","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=34947"},"modified":"2024-12-26T19:13:10","modified_gmt":"2024-12-26T13:43:10","slug":"top-10-themes-we-invested-in-2024-thematic-funds-1-yr-returns-comparison-for-2024","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/top-10-themes-we-invested-in-2024-thematic-funds-1-yr-returns-comparison-for-2024\/","title":{"rendered":"Top 10 Themes We Invested in 2024 (Thematic funds 1-yr returns comparison for 2024)"},"content":{"rendered":"

Let us imagine a farmer who plants a special crop that thrives only under specific conditions, he knows that the soil, water, and weather all align for this unique opportunity. This is much like a thematic fund\u2014a mutual fund designed to invest in a particular theme, trend, or sector that is expected to grow based on current market opportunities. Whether it’s technological innovation, clean energy, healthcare advancements, or emerging consumer trends, thematic funds focus on sectors that are set to thrive in the future. For example, a technology-themed fund might invest in companies driving AI and automation, while a renewable energy fund could back businesses leading the green revolution.<\/span><\/p>\n

 <\/p>\n

\"Start<\/a><\/b><\/h4>\n

 <\/p>\n

In essence, thematic funds allow investors to capitalise on specific ideas and trends, but just like the farmer, they must monitor risks, as success depends on how well the chosen theme flourishes in the market.\u00a0<\/span><\/p>\n

 <\/p>\n

The top 10 thematic funds with 1-year return are listed below:<\/span><\/p>\n

 <\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
S. No.<\/th>Name of the Fund<\/th>1 Yr Return (%)<\/th>TER (%)<\/th>Fund House<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>LIC MF Infrastructure Growth Direct Plan<\/td>59.49<\/td>1.1<\/td>LIC Mutual Fund<\/td>\n<\/tr>\n
2<\/td>HDFC Defence Growth Direct Plan<\/td>56.84<\/td>0.75<\/td>HDFC Mutual Fund<\/td>\n<\/tr>\n
3<\/td>HDFC Pharma & Healthcare Growth Direct Plan<\/td>52.41<\/td>0.94<\/td>HDFC Mutual Fund<\/td>\n<\/tr>\n
4<\/td>Bandhan Infrastructure Growth Direct Plan<\/td>51.34<\/td>0.82<\/td>Bandhan Mutual Fund<\/td>\n<\/tr>\n
5<\/td>IDBI Healthcare Growth Direct Plan<\/td>48.97<\/td>1.21<\/td>IDBI Mutual Fund<\/td>\n<\/tr>\n
6<\/td>LIC Healthcare Growth Direct Plan<\/td>48.97<\/td>1.21<\/td>LIC Mutual Fund<\/td>\n<\/tr>\n
7<\/td>SBI Healthcare Opportunities Growth Direct Plan<\/td>48.78<\/td>26.01<\/td>SBI Mutual Fund<\/td>\n<\/tr>\n
8<\/td>Tata Digital India Growth Direct Plan<\/td>48.2<\/td>0.4<\/td>Tata Mutual Fund<\/td>\n<\/tr>\n
9<\/td>HDFC Technology Growth Direct Plan<\/td>48.2<\/td>0.97<\/td>HDFC Mutual Fund<\/td>\n<\/tr>\n
10<\/td>ICICI Prudential Pharma Healthcare & Diagnostics Growth Direct Plan<\/td>47.98<\/td>1.09<\/td>ICICI Prudential Mutual Fund<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Source: Kuvera, 15<\/span>th<\/span> December, 2024.<\/span><\/p>\n

 <\/p>\n

The above data provided represents the top 10 Fund of Funds (FoFs) with the highest one-year returns, showcasing a variety of sectors and industries. <\/span><\/p>\n

 <\/p>\n

Leading the list is <\/span>LIC MF Infrastructure Growth Direct Plan<\/b> with an impressive return of <\/span>59.49%<\/b>, followed by <\/span>HDFC Defence Growth Direct Plan<\/b> at <\/span>56.84%<\/b>. <\/span><\/p>\n

 <\/p>\n

Funds focusing on healthcare, such as <\/span>HDFC Pharma & Healthcare Growth Direct Plan<\/b> and <\/span>IDBI Healthcare Growth Direct Plan<\/b>, also perform well, with returns exceeding 48%. <\/span>SBI Healthcare Opportunities Growth Direct Plan<\/b> offers a noteworthy return of <\/span>48.78%<\/b>, despite its high Total Expense Ratio (TER) of <\/span>26.01%<\/b>, indicating the diversity of strategies within FoFs. <\/span><\/p>\n

 <\/p>\n

The performance of these funds demonstrates the increasing interest in sector-focused investments, particularly in infrastructure, defense, healthcare, and technology, aligning with investor interest in specific, high-growth sectors.<\/span><\/p>\n

 <\/p>\n

Thematic funds have gained significant traction in India, especially in the past few years, driven by strong market performance in sectors like infrastructure, healthcare, and technology. As reported by The Economic Times, assets under management (AUM) for sectoral and thematic funds surged manifold from Rs 2.71 lakh crore in January 2024 to Rs 4.61 lakh crore in November 2024, reflecting growing investor confidence in this category. <\/span><\/p>\n

 <\/p>\n

These funds target specific themes or sectors, such as PSU companies, infrastructure, and technology, offering high returns when those sectors outperform. The allure of thematic funds lies in their potential for above-market returns during favorable economic conditions, such as government-driven initiatives or booming sectors like infrastructure and healthcare\u200b.<\/span><\/p>\n

 <\/p>\n

However, experts caution that thematic funds come with higher risk, especially when sectors are already performing well. They advise investors to be selective and ensure they understand the specific risks involved, as market rotations can impact sectoral performance\u200b.<\/span><\/p>\n

 <\/p>\n

The Benefits of Thematic Funds in India<\/b><\/h2>\n

 <\/p>\n

Targeted exposure, capitalizing on trends, sectoral diversification, potential for above-market returns and access to niche markets are some of the key benefits offered by the thematic funds in India, they:<\/span><\/p>\n